Professional Documents
Culture Documents
Personal Selling: Preparation and Process: SDM-Ch.2 1
Personal Selling: Preparation and Process: SDM-Ch.2 1
SDM-Ch.2
Learning Objectives
To understand psychology in selling, buying decision process and buying situations To learn communication skills, sales knowledge, and sales related marketing policies To understand personal selling process To learn about negotiation
SDM-Ch.2
Psychology in Selling
Stimulus (Sales Presentation) Buyers decision making process Response (buy or no buy)
If a sales person makes a presentation, the prospect may or may not buy The above buyer behaviour model does not tell us the reasons of buying or not buying To understand the psychological aspects of selling or buying, salespeople should study consumer or buyer behaviour, including buying process and situations
SDM-Ch.2 3
SDM-Ch.2
Buying process and situations differ for household consumers and business buyers. Consumers / Buyers may skip or reverse some stages in buying process. E.G. A consumer buying toothpaste
SDM-Ch.2 5
Company knowledge
Product knowledge Customer knowledge Competitor knowledge
Major reasons for giving above information / knowledge through training programmes to salespeople are: increase their self-confidence Meet customers expectations Increase sales Overcome competition
SDM-Ch.2 6
The sequence of above steps may change to meet the sales situation in hand. Some of the above steps may not be applicable for selling to the trade We now discuss application of above steps to industrial selling
SDM-Ch.2 7
Prospecting
It is identifying or finding prospects i.e. prospective or potential customers. Methods of prospecting or sales lead generation are: (1) referrals from existing customers, (2) company sources (website, ads., tradeshow, teleprospecting), (3) external sources (suppliers, intermediaries, trade associations), (4) salespersons networking, (5) industrial directories, (6) cold canvassing, (7) standard industrial classification (SIC) system.
Qualifying
Companies qualify sales leads by contacting them by mail or phone to find their interests (or needs) and financial capacity. Leads are categorized as: Hot, Warm, and Cool
SDM-Ch.2 8
Preapproach
Information gathering about the prospect. Sources of information: the Internet, industrial directories, government publications, intermediaries, etc. Precall planning Setting call objectives Tentative planning of sales strategy: which products, features and benefits may meet the customer needs
SDM-Ch.2
Approach
Make an appointment to meet the prospect Make favourable first impression Select an approach technique: Introductory Customer benefit Product Question Praise The approach takes a few minutes of a call, but it can make or break a sale
SDM-Ch.2 10
SDM-Ch.2
11
SDM-Ch.2
15
Using Demonstration
Sales presentation can be improved by demonstration Demonstration is one of the important selling tools EGs: Test drive of cars; demonstration of industrial products in use Benefits of using demonstration for selling are:
Buyers objections are cleared Improves the buyers purchasing interest Helps to find specific benefits of the prospect The prospect can experience the benefit
16
SDM-Ch.2
SDM-Ch.2
Negotiation
Salespeople, particularly in business to business selling, need negotiating skills When to negotiate? (a) When the buyer puts certain conditions for buying to the seller, (b) When agreement between the buyer and the seller is needed on several factors, (c) When the product is customised, (d) When the final price is to be decided How to prepare for negotiation? (a) planning, (b) building relationship, (c) purpose Styles of negotiation (a) I win, you lose, (b) Both of us win (or win-win style), (c) You win, I lose, and (d) Both of us lose
SDM-Ch.2 20
Key Learnings
For understanding psychology in selling, study consumer or buyer behaviour, buying process and situations Salespeople are given knowledge of sales and relevant marketing policies in order to increase their selfconfidence and sales, and meet customers expectations Typical steps in the sales process include prospecting and qualifying, preapproach, approach, presentation and demonstration, overcoming objections, trial close / closing the sale, follow-up and service Salespeople should know when to negotiate, how to prepare for negotiation and which style of negotiation to use
SDM-Ch.2 21